Authored by James Gorrie via The Epoch Times,
The movie “The Year of Living Dangerously,” released in 1983, depicts a journalist facing intrigue and risk during the collapse of the Sukarno regime in Indonesia. Similarly, the Chinese Communist Party (CCP) is confronting significant challenges to its legitimacy and the stability of Xi Jinping’s rule in 2025.
Key challenges include the erosion of public trust, deepening economic crises, internal political purges, and rising social discontent. External factors, such as the new Trump administration’s focus on countering Beijing’s trade and foreign policies, will also impact the CCP’s credibility.
Erosion of Trust
One of the most significant threats to the CCP’s legitimacy is the erosion of public and political trust. Chinese citizens are increasingly aware of the state’s abuses and pessimistic about the future, leading to a sense of alienation, especially among the younger generation. The CCP’s promises of common prosperity have been revealed as self-serving, contributing to a loss of trust among investors and a record level of capital flight from China.
This erosion of trust extends to the investment community, reflecting long-term concerns about China’s financial system’s sustainability. The CCP’s legitimacy has historically relied on economic growth and stability, but fewer Chinese believe the party can deliver on these fronts, fueling rising discontent.
A Slew of Economic Crises
China’s deepening economic crises, including job losses, a collapsing real estate sector, and stagnant growth, undermine the CCP’s power. State-owned enterprises and inefficiency exacerbate economic challenges, leading to capital flight and a lack of confidence in the Chinese economy.
Political Purges: Strengthening Control at a Cost
Xi Jinping’s consolidation of power through political purges has created uncertainty and friction within the Party. The increase in state-owned enterprises and takeovers of private companies further perpetuate the CCP’s control but contribute to the country’s downward economic spiral.
Social Discontent
The unraveling social contract between economic growth and political obedience threatens the CCP’s legitimacy, especially as social discontent and protests increase. Harsh crackdowns and detention centers aimed at quelling dissent may backfire, undermining loyalty to Xi Jinping.
External Headwinds Pose More Challenges
The Trump administration’s efforts to decouple from China in trade and technology, along with other countries’ wariness of China’s influence, present additional challenges for the CCP in 2025. The rivalry between China and the United States, coupled with global efforts to limit Chinese exports and influence, will shape the CCP’s future.
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Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.
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